Housing secretary Angela Rayner has ruled out introducing rent controls in England, confirming the new government will instead press ahead with reforms already under way. As your local property experts, here is what was said and what it could mean for landlords and tenants alike.
Speaking on BBC Breakfast and Radio 4’s Today programme last week, Rayner said ministers were not looking at rent caps, pointing to the experience in Scotland as a reason for caution. She explained that rent controls elsewhere had not necessarily brought rents down, and instead created a ceiling that landlords aim towards rather than a genuine limit.
Rayner, who returned to the housing brief earlier this month under new prime minister Andy Burnham, said the government would instead rely on the Renters’ Rights Act, introduced earlier this year, to stabilise the rental market. She pointed to new tribunal powers that let tenants challenge unfair rent increases as evidence the approach is already working.
Industry body Real Estate:UK welcomed the decision, with chief executive Vanessa Hale saying the only durable way to tackle affordability is through building more homes, and warning that rent controls tend to discourage investment and reduce supply over time.
Rayner also confirmed the government remains committed to its target of 1.5 million new homes by the end of this Parliament, despite admitting the goal has become a “really difficult stretch target” amid rising construction costs. Recent forecasts from Savills suggest England may fall well short of that number, with planning decisions also down in recent months.
For landlords and tenants alike, this announcement offers a degree of certainty. Rent controls are off the table for now, and the focus remains on the Renters’ Rights Act and boosting supply rather than capping what landlords can charge.
We keep a close watch on housing policy developments like this so you do not have to, and we are always happy to talk through what it means for your own plans. Get in touch with your local Drivers & Norris branch today.
Source: Property Week
— Drivers & Norris